On July 16, VanEck Semiconductor ETF (SMH) fell 3.32% in regular trading, trading at $578.36/share, with turnover of $1.394 billion.
The decline was driven by a global semiconductor selloff that spread across markets. In Asia-Pacific trading, Korea's KOSPI index plunged over 7% triggering a circuit breaker, with SK Hynix dropping more than 10% and Samsung Electronics falling over 8%. The Philadelphia Semiconductor Index had surged 78% year-to-date, pushing trading crowdedness to historical extremes and triggering concentrated profit-taking.
Institutional selling pressure compounded the downturn. Goldman Sachs' prime brokerage unit reported that hedge funds' overall net exposure to their broad AI portfolio had fallen to the lowest level this year, with funds net selling semiconductor and hardware tech names for a fourth consecutive week. Concerns over memory chip oversupply further weighed on sentiment, as analysts downgraded third-quarter DRAM price-hike expectations amid strong pushback from downstream customers on proposed 30% increases.
The fund normally invests at least 80% of its total assets in securities that comprise its benchmark index, which includes U.S. exchange-listed semiconductor companies including medium-capitalization and foreign-listed firms. The fund is non-diversified.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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